Apartment Rent Prices, Mortgage Updates, and More: The Five
The housing market is still red-hot! Despite mortgage rates rising above the historic lows they reached in 2020, buyers are scooping up properties at a fast clip. When judging the attractiveness of a property, look for warning signs during the home inspection. The rental market has rebounded and then some as apartment rent prices are climbing quickly and now exceed the same period last year. It is important to note, however, that we are still navigating the pandemic and many homeowners are struggling to make ends meet. Keep reading for insights into these topics and more.
The rental market has rebounded, and in a big way. With many local economies opening fully or getting closer to it, effective asking rents climbed 1.3% last month—representing the fastest pace in at least the last decade. This comes right at the beginning of prime leasing season as the majority of housing moves tend to take place between April and September. The country’s typical rent is now 1.7% above the same period last year.
The Mortgage Boom Is Fading (realtor.com)
Recently, mortgage rates have been rising. This has led to a dip in refinancing activity. Despite this trend, the housing market remains red-hot which has led lenders to engage in price wars. For a borrower, this means lower rates are available. This is good news as funding at great rates is readily available for your deals. Things are getting better with mortgage forbearance rates dropping to 4.36% yet millions of homeowners are still having trouble making their mortgage payments.
There is a lot to learn about a fixed mindset versus a growth mindset. One important thing to note is that we have both mindsets. As a leader, it’s all about learning from your experiences and taking constructive action. Hallmarks of both growth mindset leaders and fixed mindset leaders are listed as well as action items for pivoting from a fixed to a growth mindset. History shows that effective leaders have a growth mindset. Join the club.
If your investing strategy is a fix and flip or a rental property, a home inspection is critical in helping you decide whether or not you should invest in the property. Things may come up which you originally did not notice which will alter the attractiveness of the property. Some issues that arise are worth the hassle while others become deal breakers. Five deal breakers are mentioned including foundation problems, wiring issues, mold or mildew, an old roof, and bad previous remodels or upgrades.
Mortgage Forbearance Drops to 4.36%, Exits Pick Up Steam (HousingWire)
In the second quarter of 2020, when we were fully entrenched in the wrath of the pandemic, mortgage delinquency rates stood at 8.22%. Since then, that figure has now dropped to 6.38%. It is estimated that 2.2 million homeowners are still in some sort of forbearance plan. While numbers are decreasing, this still represents a sizable number of homeowners who are in a bind and are struggling each month.
Within the last year, the housing market has faced many changes. As the world continues to make strides at returning to normal, the housing market is making necessary adjustments. Apartment rent prices are rising as we enter the prime moving season, and the mortgage boom is plateauing as interest rates are inching back up. However, the percent of mortgage forbearance is declining.
We hope this update serves you well as we enter the second half of 2021. Be sure to also analyze MyHouseDeals’ 2021 Q1 market report. We’ve let you know what markets made the most deals in 2021’s first quarter, as well as the hottest zip codes for those markets.
We’ll catch you next time for another selection of hand-picked resources to boost your real estate investing business.
Stay safe, stay healthy, and happy (and profitable) investing.